Robin's Corner - 2011

Robin Matters' weekly quotes covering topics on the mortgage industry to the global economy

January

  • 5/01/2011 - The Association of Certified Fraud Examiners recently published the Asia-Pacific findings from its global survey in the on occupational fraud abuse. Interestingly, approximately 85% of fraud perpetrators had never been charged with, or convicted of, a prior criminal offence. The median loss on cases in Australia was US$466,400, whilst the global median of US$160,000.
  • 13/01/2011 - The UK Guardian paper recently reported that rising unemployment will cost the UK government $2.3 billion more than expected in welfare benefits this year.
  • 20/01/2011 - On or before September this year Victorian sellers will have tighter rules on cooling-off periods, with buyers having 3 days to change their minds after signing a contract unless signed on before or after an auction. Cooling off can no longer be waived via independent legal advice.
  • 27/01/2011 - According to Bloomberg the world's financial institutions lost US$1.7 trillion since the crash of August 2007 but have since had capital raisings of US$1.2 trillion.
    Interestingly, however, is that the US banks only raised US$517 billion, or 74% of losses, whilst European Banks raised US$558 billion, or 10% more than there losses!

February

  • 03/02/2011 - According to an article in the Financial Review Merc’s expectations in the Gold Coast market are well and truly being realised with a penthouse that originally sold off the plan for $5.95 million having just being purchased for $2.5 million. A house in Paradise Waters sold in 2005 for $5.8 million has now been sold for $4.8 million
  • 17/02/2011 - Recently released ABS data for November 2010 showed first home buyers snuck up to nearly 16% of the monthly sales but their average loan was only $277,900; the lowest for just over a year.
  • 24/02/2011 - According to Foreign Policy Journal 10% unemployment in the US is the new normal. If a business owner fires 10 people and a year later output is back to what it was albeit on the reduced workforce, it suggests that the jobs that were lost were never needed in the first place!

March

  • 07/03/2011 - Effective January 1st 2015 Basell III sets a new standard for sufficient high quality liquidity liquid assets that would permit a Bank to survive a minimum of one month of acute stress. The RBA and APRA will create a new facility which will allow Australian registered banks to borrow money on commercial terms to get through such emergencies.
  • 15/03/2011 - A recent debt and savings survey by RaboDirect found that 49% per cent of respodents with a home loan would be 60 or older before they had finished paying it off; not sure when they get to save for retirement!
  • 22/03/2011 - I recently read that America is borrowing $40 billion per month to pay for its lifestyle whilst China is making $25 billion per month from the US and stashing it under the mattress.
  • 29/03/2011 - The chief economist of NAR (national association of realtors), Lawrence Yun stated that distressed sales equated for 37% of residential sales in America in January and non-borrowed sales accounted for 32% of all sales, about 3 times average. The median price fell 3.7% from January to $158,800, its lowest since April 2002.


The material contained within this document is intended as a guide only. No liability or otherwise is assumed for the material contained herein either by Merc, its principal, or its servants and agents. No material herein shall form the basis or be part of any agreement and no warranty is given or implied as to the accuracy of any part of the material. All opinions are of a personal view.

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